Thai Company Or Freehold
Thai Company Or Freehold
Most of my foreign clients still don’t know , when they want to purchase a condo, if purchase with a thai company or freehold. They want to know which way is better before to invest in a property.
Well, both ways have pro and con, and the final decision is mostly about what the owner wants to do with his property in the future.
Thai company:
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- The funds can be already in Thailand, don’t need to be remitted from overseas.
- Can use the apartment as an asset of the company for future investments (ex. Loan)
- Can use the company to obtain visa and work permit
- Will save a lot in tax (property tax, business tax) when he will re sell his property, just selling the shares of the company
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- Need thai shareholders
- Costs of the company set up, balance sheet and accounting
Freehold:
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- No need thai shareholders, the property is in the client’s personal name
- No company costs and other costs
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- Proof that the funds used to purchase the condominium were remitted from overseas in foreign currency (except from whom hold a resident status)
- When the client wants to re sell, will pay tax according with the difference between purchase-selling price and how long he owned the property (mitigation factor)
- Cant’ use the property as a collateral asset to obtain bank credit (can’t be financed from a Bank to purchase it, unless from whom hold a resident status)
- Usually purchase the same apartment costs more per square meter if freehold vs. Company or leasehold
For more information regarding how to purchase a condominium freehold property don’t hesitate to contact Phuket Island Property.
We can help you to set up a Co., Ltd or to follow the Freehold steps to legally purchase your property.
Niccoli Uberto Phuket Island Property 399 Patak Road, Karon beach Phuket, 83130 Thailand